Arbitrage is when an investor purchases an investment property below market value and quickly sells or rents it for a profit. Real estate arbitrage occurs when a real estate investor purchases an investment property and sells it simultaneously at a higher price.Rental arbitrage is a real estate investing strategy to capture the spread between a property's long-term rental rate and short-term rental potential. Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price. Rental arbitrage is the practice of renting out a longterm rental on a shortterm basis. Assignment arbitrage helps multifamily owners and operators optimize their investment returns.